Current Stock Market
By: Anne Durrell
The S&P500 had bounced back from a decided low of about 740 in November, 2008 to a nice high of about 944 in the beginning of January. That type of bounce is expected after the holidays. Following this the S&P500 then strengthened in the 800's buoyed by the thought that the new administration would come in to save the system. The current stock market was said to be curiously optimistic.
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That optimism was unfortunately short lived after the inauguration, for the Democratic Congress rallied for more taxes, then presenting a very troublesome "cure" for our healthcare system, which was the only part of the stock market that was still optimistic.
The current stock market's optimism plummeted with the Bank Rescue Plan's announcements. It was then that the S&P500 went down from its position in the mid 800s to 666! Interestingly enough, the majority of the stock buyers seemingly disappeared from the market following that.
From there, the current stock market began to rally. The rally was driven by a number of factors, most of them being good or at least decent reactions to the Bank Rescue Plan, as well as encouraging rule changes by the Securities Exchange Commission (SEC) with regard to trading. Investors who use technical charts have all pointed to their charts as predicting that the rally will continue, thus even with a few lows, this news-driven market is seen as somewhat more positive.
The market, including the current stock market, tends to work by looking ahead. Most Americans believe that there is an economic recovery up ahead, and their investment strategies are buoyed by that kind of thinking.
Even as we "speak" mortgage refinancing is actually lowering household's monthly costs, as well as allowing new buyers to enter the housing market through various programs that were designed to give a shot in the arm of the housing market.
It is said that making a fortune in the stock market, is always a possibility, however most agree that you will need to remove and turn off the noise that everyday news makes. In its place you need to focus on finding the best-run companies, then determine what a "good price" is for that stock. The final point is always to hang onto the stock during inevitable market ups and downs! That is how you deal with the current stock market.
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